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2020 GLOBAL CITIZENSHIP REPORT | 1 Our Company

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2020 GLOBAL CITIZENSHIP REPORT | 1 Our Company 2020 Global Citizenship Table of Contents Our Company 2 Recycling and Beyond 53 From our Chairman and CEO 3 Our Commitment to Circularity 54 Message from Our Chief Sustainability Officer 4 Natural Resource Stewardship 55 COVID-19 Response 5 Recycling 55 Vision 2020 Goals 6 Circular Economy 57 Vision 2030 Goals 7 Our Businesses 8 Responsible Business Practices 59 Our Operations 9 Our People 61 Our Communities 70 Our Sustainability Strategy 10 Governance 73 Sustainability Throughout Our Value Chain 12 Global Ethics and Compliance 76 Alignment with the UN Sustainable Government Relations 79 Development Goals 12 Stakeholder Engagement 15 Appendix 81 Engagement Method by Stakeholder 81 Sustaining Forests 17 Materiality Assessment 85 Forest Stewardship Strategy 19 Material Issues 85 Responsible Fiber Procurement Policy 20 2020 Diversity of Governance Bodies 86 Fiber Certification 23 Employee Diversity 86 External Collaborations 25 Giving Structure and Governance 87 External Initiatives 88 Sustainable Supply Chain 27 Associations Membership 90 Responsible Sourcing Strategy 29 Sourcing Sustainably 31 Glossary 93 Risk Management Approach 31 Fiber Supply 32 GRI Content Index 97 Transportation 33 Supplier Social and Environmental Impact 33 Manufacturing Responsibly 35 Sustainable Manufacturing Strategy 37 About this Publication Energy Efficiency 38 This report has been prepared in accordance with the Emissions Reduction Strategy 39 Global Reporting Initiative (GRI) Standards: Core option. GRI is a universally applicable, comparable framework GHG Emissions Reductions 40 that facilitates transparency and accuracy. NOX, SO2 and Other Air Emissions Reductions 42 Water Stewardship 43 Unless otherwise indicated, information is from the 2020 calendar year, and data are accurate as of Water Quality 45 December 31, 2020. Solid Waste 46 Fiber Efficiency 47 View our other reports at InternationalPaper.com/reports. Sustainability at International Paper encompasses our entire value chain. This report is organized around the Innovative, Renewable Products 48 key impact points along our value chain. Creating Renewable Solutions 50 Designing for the Circular Economy 50 Research and Development 51 About the cover: International Paper is committed to the Product Stewardship 52 stewardship of our natural resources, and we’re improving our Our Products 52 climate impact by reducing our greenhouse gas emissions by 35% as part of our Vision 2030. 2020 GLOBAL CITIZENSHIP REPORT | 1 Our Company Our vision is to be among the most successful, sustainable and responsible companies in the world. WHO WE ARE CORE VALUES We are one of the world’s leading producers of renewable, fiber-based packaging, pulp and paper. Above all, we care about people. We look out for each Safety other to ensure everyone returns home safely. WHAT WE DO Our mission is to improve people’s lives, the planet and our company’s performance by transforming renewable resources into products We act honestly and operate with integrity and respect. people depend on every day. Ethics We promote a culture of openness and accountability. HOW WE DO IT We are responsible stewards We do the right things, in the right ways, for the of people and communities, right reasons, all of the time — this is The IP Way. natural resources and capital. Stewardship Together, The IP Way and our core values of We strive to leave everything safety, ethics and stewardship serve as our in better shape for future guideposts as we carry out our mission. generations. $21 Billion net sales More than $23 Million in 2020 invested in 2020 to address critical needs in the communities where Approximately 48,000 we live and work global employees Every International Paper job supports 3.25 jobs More than 25,000 in industries and customers in 150 countries local communities 2020 GLOBAL CITIZENSHIP REPORT | 2 From our Chairman and CEO In 2020, the COVID-19 pandemic forced us to work in different ways, but it also strengthened our sense of responsibility and pride in manufacturing essential, sustainable products that people depend on every day. The pandemic heightened our understanding of the connection between environmental stewardship, social Mark S. Sutton Chairman of the Board and equity and resilience. And while challenging on many levels, Chief Executive Officer 2020 gave us an opportunity to truly live up to our core values of Safety, Ethics and Stewardship. Operating our facilities to take care of customers starts with our employees showing up and working safely — and they did just that, every day, throughout the pandemic. As an integral part of the supply chains of essential products around the world, our global INVESTING IN teams were the heroes behind the frontline heroes ensuring consumers had access to PEOPLE DURING the products they needed. I am incredibly proud of and grateful for their resilience and COVID-19 their ongoing commitment to our customers, our communities and each other. We continued to meet the needs of our communities head on. As food banks around the Implemented new safety world began to see increased demand for food assistance, we responded with a measures to keep donation of two million corrugated boxes to enable the safe and efficient distribution of essential workers food. Our global teams stepped up to meet critical community needs: From corrugated at our facilities safe. dividers supporting social distancing to feminine hygiene products and other fiber-based hygiene products for hospitals, when our teams saw a need, they responded. As a company, we amplified our diversity and inclusion efforts. Each of our businesses Donated two million and staff groups have developed diversity and inclusion plans to increase women and corrugated boxes to food minority representation. Additionally, we launched our first four Employee Networking banks across the world. Circles (ENCs), whose missions include attracting, developing, promoting, retaining and giving a voice to their members: LGBTQ+ identified individuals and allies, veterans of the armed forces, African-Americans and women. Donated more than We made measurable improvements to close out our Vision 2020 sustainability goals, 300,000 other products and I am pleased with the progress we made throughout the past decade. Our progress including paper, on these goals helped us address the expectations of our customers and our paper bags, paper rolls communities, become a better company and recognize that there is more we must do. and feminine hygiene products. Last year we introduced Vision 2030, four goals that demonstrate our commitment to building a better future for people, the planet and our company. Each of the following Vision 2030 goals includes robust targets to drive sustainable outcomes for people and communities, the environment and our customers: Employees provided 11,000 socially distant • Healthy and Abundant Forests volunteer hours to • Thriving People and Communities support communities. • Sustainable Operations • Renewable Solutions 2020 GLOBAL CITIZENSHIP REPORT | 3 Vision 2030 demonstrates that we are thinking differently about how we use natural resources and our impact on the environment. It underlines our desire to drive real “While challenging on progress in the circular economy. We are also increasing our focus on people, many levels, 2020 gave us including those who work for us and others in our communities. Through these an opportunity to truly goals, I am confident we will enable sustainable outcomes in our communities and in our workplace over the course of the next decade. live up to our core values of Safety, Ethics I am energized by the challenging work ahead of us, and I look forward to reporting our first year of our Vision 2030 progress in next year’s report. and Stewardship.” Mark S. Sutton, Chairman of the Board and Chief Executive Officer Mark S. Sutton Chairman of the Board and Chief Executive Officer, International Paper Message from our Chief Sustainability Officer The intersection of natural resources, human health and our climate has never been more pronounced. As such, we have set ambitious forest stewardship targets for the next decade that recognize and respond to the environmental, social and economic benefits forests provide — not least of which is their magnificent ability to capture carbon from the atmosphere. Partnerships with organizations such as World Wildlife Fund and The Nature Conservancy are enabling us to make meaningful contributions to the advancement of science-based targets for forests, natural climate solutions and watershed protection. In the development of our Vision 2030 goals, we recognized that managing climate- related risks is critical throughout our value chain to advance a low-carbon economy and Sophie Beckham to remain within our planet’s natural boundaries. That’s why our greenhouse gas (GHG) Chief Sustainability Officer targets are aligned with the best available climate science. And it’s why we are aiming to advance circular solutions throughout our value chain to ensure that all of our products are 100% reusable, recyclable or compostable by 2030. People are at the heart of all we do. As we embark on the next decade, we have increased our focus on our people and communities. We invite you to join us in driving community resilience, diversity, inclusion and safety among our workforce, workplace and marketplace. Sophie Beckham Chief Sustainability Officer 2020 GLOBAL CITIZENSHIP REPORT | 4 COVID-19 Response: Preserving an Essential Industry During a Global Pandemic During the COVID-19 pandemic, International Paper was prepared to meet the unique challenges the pandemic presented. Supply and Demand Met: Forest products are a necessary component of the supply chains required to produce and deliver food, pharmaceuticals, health and hygiene products, and emergency supplies to consumers and communities around the world. Our world-class global sourcing teams never slowed down as they helped keep essential supply chains moving globally. Safe and Proud Workforce: During the COVID-19 pandemic, we applied new layers of protection to ensure our essential workers stayed safe and healthy while at work. When workers needed to quarantine, we ensured they continued to receive their pay.
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